Fuel prices in China see steepest drop in 4 years

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Retail prices of gasoline and diesel were lowered by 510 yuan (73.4 US dollars) and 490 yuan (70.5 US dollars) per tonne respectively, the largest drop since December 2014, China's top economic planning agency National Development and Reform Commission (NDRC) said on Friday.

The decline, which comes into effect on Saturday, will see 92-octane, 95-octane gasoline, and zero diesel fuel fall by 0.40, 0.42 and 0.42 yuan per liter on national average, driven by the slump in global oil prices.

Prices of gasoline and diesel in China have gone up by 620 yuan (89.2 US dollars) and 595 yuan (85.6 US dollars) respectively since the beginning of 2018.

Affected by Saudi Arabia's increased production, higher-than-expected rise in US crude oil inventories, Washington's relaxation of sanctions against Iran, and the decline in overall expected demand, international oil prices have plummeted in an all-round way.

At present, Brent and West Texas Intermediate (WTI) crude oil prices stand at 66 and 56 US dollars per barrel, about 20 US dollars lower than the four-year high in early October with a slump of 23 percent and 26 percent respectively.